Selling stock markets increased demand for precious metals and government bonds. During the trading price of gold for December delivery advanced 2.2 percent to 1153.20 dollars an ounce on the New York Stock Exchange, but later returned to the starting levels. Yields on 10-year US Treasuries fell to 2.084%, which is the lowest level since April 30. The yield on the identical German bonds fell to a three-week low of 0.56 percent. The yield on the securities falls when the price rises.
Slowing Chinese growth increases the pressure on commodity prices, which the Asian country has become a major user in the last decade. The price of Brent crude oil fell by nearly 1% to 46.17 dollars a barrel on Friday, marking the longest period of decline since 1986
“Tensions in emerging markets gained, including on expectations the Fed to raise rates. You can not seriously think that half the world economy can presents a worse without the effects of this begin to be felt in the other half,” he said Wall Street Journal before Charlie Wilson, manager at Thornburg Developing World Fund. Currently the currencies of developing countries suffer from the sharpest depreciation of the Asian financial crisis in 90 years. Among the biggest gubeshi include Brazilian real, Colombian peso and the Turkish lira, which lost over 20% of its value since the beginning of the year.